Successful Initiatives in Bangladesh Target Social Responsibility and Ethical Sourcing

Sourcing from low-cost countries, a critical component of today's global supply chains, is the norm in the apparel industry. For many decades, European and US apparel brands and retailers benefited from outsourcing production and value-added activities to low-cost countries, such as Bangladesh, China, India, and Vietnam.

Bangladesh, in particular, was a favored source for apparel outsourcing until incidents, like the collapse of the eight-story Rana Plaza factory. This resulted in the deaths of over 1,000 workers, bringing to light the non-existent safety measures in that country. This incident challenged the sourcing strategies of large apparel brand retailers, compelling them to embrace socially responsible procurement processes.

This ARC Advisory Group report focuses on the two related, but independent initiatives, the Alliance for Bangladesh Worker Safety and Accord on Fire and Building Safety in Bangladesh, taken by leading apparel manufacturers and retailers that gained new traction after the Rana Plaza disaster. Both five-year initiatives were formed to train workers and improve the conditions in, and safety of, Bangladesh's factories.

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Keywords: Alliance for Bangladesh Worker Safety, Accord on Fire and Building Safety in Bangladesh, Ethical Sourcing, Factory Audits, Rana Plaza, Ready-made Garments (RMG), ARC Advisory Group.